Savings vs Investment

[weboo]

Got some dosh in my bank account and want some advice on what to do with it.

Do I:

1. Put it in high interest account - if so, which one? Can only see Leeds BS doing 4.85% PA on amounts over 25k
OR
2. Invest it - stocks, shares, property (Buy to let)

What are your thoughts? what would you do?

[Methuselah]

Savings vs Investment

Jesus saves.
Moses invests.

[Ardesco]

Shares = Make/Lose a fortune depending on many factors
Bank = Average income(unless the bank goes down the pan)

[VectraMan]

Spend it on fast cars and loose women.

(Word highlighted to help Ardesco with his spelling).

[Jog On]

Depends on things like your appetite for risk, how much you know about investing etc.

If you aren't sure but want to make more than what you would in a high interest account you could put it in a mutual fund or index tracker.

A good place to find out more is the Motley Fool:

http://www.fool.co.uk/school/2006/sch060130.htm

They do a good book on UK investing as well:

http://www.amazon.co.uk/Motley-Fool-...7702610&sr=1-1

[_V_]

The only truly safe place for money in the UK is property. Stick it down as a deposit on a BTL and repeat every few years until you have £53M in property.

[weboo]

Thanks for your replies and links, will take a look at all this. But the BTL stuff looks very interesting

[TheFaQQer]

Latin American dot com startups - it's the future.

[lukemg]

Suggest you spread it around a bit.
1. Keep warchest where you can get at it, enough cash to cover you for a few months (put on deposit, 30-day access maybe)
2. IF you can leave some money alone for minimum 5 years, maybe 10 then use up shares ISA annual allowance = 7k (invest in tracker or general managed uk fund, see hargreaveslansdowne for some info + discounts on purchase but not advice, consider 2 seperate funds)DONT use an IFA for this. Following year choose different area, maybe europe fund, USA, global etc. Doesnt need to be declared on tax return = easy admin. DONT try to buy individual shares/guess the market, you haven't got a hope, hence a tracker or something safeish for first choices.
3. I think you have missed the BTL boat, relies on capital appreciation, even with gearing (use of borrowed money) to justify all the possible grief (mate got a phonecall saying if you come here I will kill you). Consider heavy investment in own house for property exposure (exempt from capital gain also)
4. I have got a SIPP also, just for the hell of it.

Good luck

[Jog On]

Here's a good source for BTL info:

http://www.axispropertyinvestment.com/

I heard the guy who owns it talk and he's the real deal, as soon as I've got enough I'm in with both feet.

I think when it comes to picking your own shares it's really down to how much time and effort you're prepared to invest into learning how, there are plenty of books and courses if you're into it.

Definitely spread it around a bit as per above post - bit of property, some shares, some bonds, some cash and if you're into the more adventurous stuff some of that.

The rule of thumb (according to Benjamin Graham) if you want to play the crazy game is to set aside an amount (5-10% or whatever of your investment capitol) you want for speculative stuff like covered calls, forex, spread betting etc and just use that. Another rule of thumb (according to Warren Buffet) is never lose capitol!

How much you decide to place into property/shares/bonds/cash/crazy stuff is personal preference, there is no 1-size fits all, go with what you know and what is in your personal comfort zone.

Ignore the media, doomsayers and chicken littles as well the worst thing you can do is stay out of the market.